South Korea’s financial regulatory agency issued a legislative notice to formulate implementation regulations and supervisory regulations related to

The Financial Services Commission (FSC) of South Korea has issued a notice regarding the legislation of the "Enforcement Regulations of the Virtual Asset User Protection Act" and the "Regulations on the Supervision of the Virtual Asset Industry", which specify the details of the legal authorization.The contents include: It is reported that the enactment of the enforcement regulations and supervision regulations is expected to be announced from December 11, 2023 to January 22, 2024, and will be implemented on July 19, 2024 after review by the National Tax Service and other procedures.

firstly, adding objects that are not covered by the "Virtual Asset User Protection Act", such as deposit tokens linked to CBDC and NFT;

secondly, clarifying the management institutions and operation methods for user deposits;

requiring 80% of user virtual assets to be stored in cold wallets;

fourthly, establishing standards for participation in mutual aid or reserve funds, and implementing responsibilities for accidents such as hacking and computer failures;

fifthly, defining the possible timing of undisclosed important information leaks and insider trading based on the characteristics of the virtual asset market;

sixthly, generally prohibiting the arbitrary freezing of user virtual asset deposits and withdrawals, and allowing freezing of deposits and withdrawals only in exceptional circumstances;

seventhly, imposing abnormal transaction monitoring obligations on virtual asset exchanges and establishing a fine procedure for unfair trading behavior.